Who was Buying ITM Call?

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I don’t know about you, but I’m confused. Totally, thoroughly, utterly confused. Strangely enough, I’m not confused about my investment strategy. I’m not even confused about the market. What confuses me is the “market sentiment.” That’s a fancy word investing professionals use to describe investors’ expectations and reactions.

Yesterday was a horrible day for the market as recession fears scared away all the buyers. The Institute of Supply Management published a key index showing that non-manufacturing business activity fell sharply. The Dow Jones Industrial Average followed suit, losing 370 points or almost 3%. It was ugly and lots of people were losing money.

You’ve seen them, I’ve seen them. These advertisements from newsletter authors, and journalists, all promising riches and returns from the promised land.

If you’re like most people 2008 was a rough year. Many have lost a significant chunk of their net worth. Others have had to postpone retirement because of the financial meltdown. Millions of homeowners are now underwater… and sinking fast.

Stock Market timing is a misunderstood concept and there has been a lot of debate between the “buy and hold” crowd and active market timing practitioners about its success. Ironically, the biggest benefit of stock market timing strategies is rarely discussed and we think its time to uncover this secret hiding in plain sight.

Apparently, mutual funds are out and ETFs are in and it is quite amazing their ability to capture investment dollars from investors that normally do not want to participate in the stock market after the last global crisis meltdown, where they probably saw their investments dwindle by 45% in a very short amount of time. Currently, there are about 150 ETFs now, and they control about $35 Billion in the market and they continue to grow in strength and numbers.

Investing in the stock market is risky, but in this article we discuss a simple strategy, covered call option writing, to reduce your risk and increase your profit. Easy to understand, easy to implement, so trade like the pros and use covered call option writing to increase your profits.

One very important factor, (in fact probably the most important factor) in trading is cutting your losses short. You have to know when you are wrong and it is just better to get out of the position instead of staying in it and letting your losses pile up.

I didn’t expect to see empty stores and abandoned restaurants at one of the busiest shopping centers in Scottsdale. But, that got me thinking. Perhaps, the retail industry is having a tougher time than most people think. You certainly wouldn’t know that by looking at their stock prices.

I don’t know about you, but I’m confused. Totally, thoroughly, utterly confused. Strangely enough, I’m not confused about my investment strategy. I’m not even confused about the market. What confuses me is the “market sentiment.” That’s a fancy word investing professionals use to describe investors’ expectations and reactions.